Open a Bank Account in the UK & How to Do Money Transfers

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Steps on to Open a UK Bank Account when We Want to Establish in this Country

&

How to Do Cheap Money Transfers to Save Money

One of the big worries when people come to this country is to know how to open a bank account and how to perform money transfers and paying the least transfer fees.

but keep calm, we’ve got your backs! 🙂

Every bank in England or in the UK in general are very conservative and would not bend any rules to get your money invested in their banking accounts unlike in the US or in Asia.

I believe that it was caused by the legislation and new rules set by the UK government as a result of money laundering by irresponsible people for illegal activities in the pas.

This actually caused so much trouble not only for the visitors or residents that needed a banking facilities to save their paper money.

But it was also troublesome to the UK citizens as well as I’ve heard the rants and raves from UK citizens born and raised in the UK itself.

Step 1:

The necessary documents to open a Banking Account:

If you’ve never dealt with a UK bank to open a bank account, they would need a few key documents such as your current:

UK Job Employment Contract.
An EU National ID Card, Biometric Residence Permit (BRP) Card or a current Passport.
UK National Insurance Number (NIN).
And also a Proof of Address, which you can provide with a job contract or a HMRC Tax Code confirmation letter (clik HERE for details to request a letter).

Other documents that would also be accepted as “Proof of Address” includes any HMRC letters (excluding the National Insurance Number letter), house rental tenancy agreement, electric bills, gas bills, water bills, landline telephone bill or local council tax letters bearing your name and the address.

! UPDATE ! : You can now have a UK bank account number and also a debit MasterCard without having to proof your address in the UK. Click HERE to go to our Borderless International Banking solutions post!

Step 2:

Book an appointment with your Banker:

Once you have all these documents in order, go personally a bank branch of your choice and book an appointment with the bank officer.

You’ll most probably only need the said documents on the day of the appointment but just bring them to counter check with the officer if you have everything they wanted.

If you’re wondering if you could call the bank branch to set an appointment, they would most likely not accept it as they prefer to see you in person at a branch.

Also choosing a bank branch location is quite important as firstly, if you’re new in the country, you would want a bank that’s near to where you live or at least close to your workplace – its all about convenience.

The other reason being was about whether this bank branch you’re applying for has ample parking or easy access, just in case in the future when you’ve progressed into having a car to drive, you’ll find it convenient to visit your bank once in a while.

The last thing you want is having a bank that’s the only one in 100 mile radius and located on a high street that allows only public transportation or parking costs £100/minute, just kidding, but it adds up when you visit the bank frequently.

Step 3:

The appointment day:

This is probably common sense but I’ll just say it anyway, I personally like to prepare all the documents ready and save them all in one folder so that I won’t miss any documents to be submitted on the day itself.

So have everything photocopied, stamped or endorsed a few days before the appointment, no last minute errands.

Rule of thumb, its better to be over-prepared than having to come back another day to get the account opened.

BANKS IN THE UK

Which bank to choose?

In the UK, there are a variety of banks. Depending on the area where you live, most of the popular banks are usually located in the town center.

Of course, if you are in London, you will find dozens of them… but if you are in a small town in the middle of the country-side maybe its harder for you to find the branch that you prefer.

The most popular-major banks are:

Barclays
Lloyds
Halifax
Nationwide
HSBC
NatWest
Santander
CitiBank

Other than the typical banking companies, the supermarkets also have their own banks like Tesco Bank, Co-Op Bank, Sainsbury’s Bank and many more.

A few months ago, a new bank has opened in London, called Metro Bank. This bank was popular among the younger people as the bank staff are also very young and friendly.

ACCOUNT TYPES

What facilities does the banks offer?

There are several banking facilities that they offer such as :

Current Account
You can choose this account to just save your money, usually earning little to no interest.

These accounts come with a debit card with optional contactless payment feature and internet banking access.

You could also request for a check-book for payments and a pay-in-book for deposits at your local bank branch or Post Office.

Savings Account
You can choose this account to save your money and earn interest over a longer period with a minimum account balance.

These accounts come with a debit card with optional contactless payment feature and internet banking access.

You could also request for a check-book for payments and a pay-in-book for deposits at your local bank branch or Post Office.

Fixed Deposit Account
The name says it all, this account earn more interest but you cannot withdraw or deposit money to it as you wish.

Its fixed for a specific tenure (duration) for a specific interest rate.

Credit Card
This is a shopaholic’s must haves. A credit card is like borrowing money as a small loan and paying back when your statement comes on the statement date.

Home Insurance
Get coverage for your own home or your rental house’s contents by paying a yearly premium. Barclays have a great offer on this one.

Travel Insurance
If you travel a lot and you’re a resident in the UK, some of these banks offer travel insurance coverage for you and your belongings.

Some banks like Barclays would even cover your mobile phones and gadgets like Tablets, eBooks and Laptops.

All of the financial facility features mentioned in the above may differ from one bank to another. Please check on their respective websites for current updated information.

ATMs, CASH MACHINES AND COMMISSIONS

How does the ATMs or Cash Machines work in the UK?

ATMs or Cash Machine in the UK allows you as a savings or current account holder of a bank to withdraw cash for free or a small fee depending on which machine you’re using.

Example A :
You hold a Barclays Debit Card and withdrawing money from a Free To Use or like in the picture below. You’ll be charged by Barclays anywhere between £0.50 to £2.00.

Example B :
You hold a Lloyds Debit Card and you’re withdrawing money from a Lloyds machine, the transaction would be free as its a ‘home bank’.

Example C :
You hold your non-UK Debit Card and you’re withdrawing at any cash machines in the UK, you’ll be charged withdrawal fees + foreign exchange fee + Forex selling rate.

Every banks have different charges, so please check with your non-UK bank before pulling out any cash.

Where to change my foreign currency?

There’s a few ways to change your money to British Pounds (GBP). You could visit your local Money Changer (or Exchange Bureau) or your local bank.

Try avoiding exchange at airports or in the middle of a touristy area as rates are usually more expensive, so you’ll lose on the change.

Always ask if they charge commissions on top of your currency exchange rate and ask for a written quote.

If you’re not happy of the amount you get for the exchange, its okay to say ‘No, thank you’ and go for another dealer. You as a customer have your rights to compare prices.

Also avoid dealing with unlicensed individuals that offer you too-good-to-be-true prices, its both risky and illegal.

HOW TO TRANSFER MY MONEY ABROAD?

TransferWise

We are using this service since we start living in the UK.

For us, they service is the cheapest and easiest to use when we need to send money abroad.

It usually takes about 24-48hours for the money to arrive at the receiving bank, way faster than a local bank’s processing.

The commissions are lower if we compare with other companies like banks or agencies like MoneyGram.

Usually they’ll charge about £5.00 for amounts up to £1,000! Or £2.50 if you wish to send about £500….

You’d have to register an account, add your issuing bank details and the receiving account details.

You also can do transfers to other accounts which you are not the main account holder.

» Click in this link to go to the website: http://www.transferwise.com

» If you like Transferwise, you can read also our Post about their “International Bank Account“.

Banks

They have been used to transfer money since many years ago.

A lot of people choose banks to do this because they feel much secure and it is easier for them.

To be honest, we don’t like to use banks to transfer money because they normally take abusive commissions and more if you have to send the money outside of the UK.

» If you are moving to the UK, you may also be interested in our posts about “Which are the Best UK Phone Companies and How to Get a Free Sim Card” and “How to write a CV & How to find a job in the UK“.